State owned BSNL is planning to spend Rs 1500 crore to setup two data centres to lessen the burden of hosting content locally for Global internet giants such as eBay, Google, Yahoo and Microsoft.

BSNL’s aggressive data centre expansion is part of a multi-pronged effort led by Union minister for communications and information technology,Dayanidhi Maran, to have Internet data routed on domestic telecom networks in place of the current model that has such traffic bounced to US servers and back.

Yahoo is in talks with BSNL to shift its servers within India. George Zachariahs, MD of Yahoo India said,

We are in talks with NIXI and telecom-service providers to house content in India. A lot of content is actually in the US, and expensive bandwidth is used to access the content, instead of using it locally.

Reliance Communications Ltd had announced a mega plan to host Google, Yahoo and Microsoft at their Hyderabad data centre.